FAC Explorer

Audit 297532

FY End
2023-06-30
Total Expended
$1.24M
Findings
4
Programs
2
Organization: Parc Developmental Homes, Inc., Project No 072-11104 (IL)
Year: 2023 Accepted: 2024-03-26
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384399 2023-001 Significant Deficiency Yes P
384400 2023-002 Significant Deficiency - P
960841 2023-001 Significant Deficiency Yes P
960842 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.07M Yes 2
14.195 Section 8 Housing Assistance Payments Program $161,753 - 0

Contacts

Name Title Type
HT99TTEK5YM4 Michael Cohlman Auditee
3096913800 Dawn Carlson Auditor
No contacts on file

Notes to SEFA

Title: ADDITIONAL INFORMATION Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. Nonmonetary Assistance At the beginning of the year, the mortgage note payable was $1,073,493. After the current year payments, the mortgage note payable, in the amount of $1,039,808, to P/R Mortgage & Investment Corp., is guaranteed by the U.S. Department of Housing and UrbanDevelopment and secured by the housing project. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Corporation did not receive any federal awards in the form of noncash assistance for insurance in effect during the year. In addition, the Corporation did not pass through any federal grants to subrecipients.

Finding Details

Finding 2023-001
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior finding 2022-001. Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management's and the board's close supervision and review of accounting information can help to prevent or detect errors and irregularities.
Finding 2023-002
Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement:HUD regulations and the regulatory agreement required deposits into the reserve for replacements of $2,602 per month from July 2022 through December 2022 and $2,662 per month from January 2023 through June 2023. Condition: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Questioned Costs: None Context: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Cause: Management oversight. Effect: The corporation's reseerve for replacements was under funded by $358 at June 30, 2023. Repeat Finding: No. Recommendation: Management should fully fund the reserve for replacements and also ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis.
Finding 2023-001
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior finding 2022-001. Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management's and the board's close supervision and review of accounting information can help to prevent or detect errors and irregularities.
Finding 2023-002
Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement:HUD regulations and the regulatory agreement required deposits into the reserve for replacements of $2,602 per month from July 2022 through December 2022 and $2,662 per month from January 2023 through June 2023. Condition: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Questioned Costs: None Context: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Cause: Management oversight. Effect: The corporation's reseerve for replacements was under funded by $358 at June 30, 2023. Repeat Finding: No. Recommendation: Management should fully fund the reserve for replacements and also ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis.